According to the New Classical View, Aggregate Output Will Differ

question 74

Multiple Choice

According to the new classical view, aggregate output will differ from full-employment output

• A)whenever saving does not equal investment.
• B)only if the actual price level does not equal the expected price level.
• C)only if the federal government's expenditures are greater than its tax receipts.
• D)whenever imports exceed exports.

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Definitions:

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and transportation of alcoholic beverages were banned by constitutional amendment.

Equal Rights Amendment

A proposed amendment to the U.S. Constitution aiming to guarantee equal legal rights for all American citizens regardless of sex, which has not been ratified.

Wage Gap

The disparity in earnings between different groups, often highlighted between genders or races for similar work and qualifications.